Primal Solutions Reports Financial Results for Third Quarter & Nine Months of 200515 November 2005
Primal Solutions, Inc. (OTC BB: PSOL) today
reported financial results for the third quarter and for the first nine
months of 2005. Primal is a software company that enables communications
service providers (CSPs) to cost-effectively generate more revenue from
their IP networks.
Revenues for the period ended September 30, 2005, totaled $2.2 million, an
increase of 10 per cent over the $2.0 million reported for the third
quarter of 2004. The company recorded a net loss of $217,000 for the
quarter, as compared to a net loss of $236,000 for the comparable period
one year ago. On a per share basis, this resulted in a basic and diluted
net loss of $.01 per share for the third quarter of 2005.
For the first nine months of 2005, revenues totaled $6.4 million, a 14
percent increase over the $5.6 million recorded for the first nine months
of 2004. The company reported a net loss of $1.0 million for the current
nine-month period, versus a net loss of $868,000 for the first nine months
of 2004. On a per share basis, this came to a basic and diluted net loss
per share of $.03 in 2005 as compared to a net loss per share of $.03 in
the first three quarters of 2004.
"One of the highlights of the quarter was the signing of a three-year
software license and services agreement with a large telecommunications
equipment provider for our Connect IXC™ product that will be used for
its hosted IP-PBX commercial services offering," said Joe Simrell, Primal
Solutions' CEO. "This agreement provides for license fees based on
registered user volume, professional services fees for implementation,
training and application management, and an annual maintenance fee. We
expect to begin realizing increasing revenues from this agreement in 2006.
"We generated increased systems revenues during the third quarter, which
offset a slight decline in service-related revenues for the period,"
Simrell added. "Our service revenues can fluctuate from quarter to quarter,
depending on when new service contracts are signed and on the varying
service levels required by our customers.
"Despite the increase in revenues, we recorded a net loss for the period
due primarily to our continued expansion of research and development,
marketing and sales programs," Simrell noted. "These increased expenses
included R&D costs for product enhancements and the addition of new
personnel for expanded marketing, product management, business development
and sales activities. In addition, we recorded termination expenses
associating with winding down a customer contract, which totaled $36,000
for the third quarter."
Primal Solutions serves communications service providers (CSPs) --
companies offering voice, data and entertainment services such as cable TV,
high speed broadband Internet service, Voice-over-Internet protocol (VoIP)
telephone service, Video on Demand (VOD), Internet gaming, music and other
content.
"As we have previously reported, our revenue model is a mix of multi-year,
subscription-based recurring licensing agreements, traditional license and
maintenance agreements, and professional services," Simrell stated. "At
September 30, 2005, our customers under subscription-based license
agreements serviced approximately one million subscribers. This was an
increase of approximately 300,000 subscribers over the previous quarter end
and a ten-fold increase from the approximately 100,000 subscribers at
September 30, 2004. We believe this business model will enable us to
benefit financially from the dramatic increases occurring in subscribers
for IP services, especially in VoIP."
"Our working capital has decreased by $643,000 from the end of 2004 to now,
due primarily to these increased operating expenses and investments," said
Bill Bousema, Senior Vice President, and Chief Financial Officer and
corporate secretary. "We expect to continue to record net losses for the
near future as we continue implementation of our enhanced R&D, sales and
marketing programs, but we also will continue our successful pursuit of
ways to reduce cash outlays without impacting revenue opportunities."
About Primal Solutions
Primal Solutions, Inc., headquartered in Irvine, California, was founded in
1996 as a communications software company offering solutions that enable
service providers to generate revenue from their IP networks. Primal's
products include Access IM® Network Mediation, Connect RTR™ Real Time
Rating, Connect Prepay™, Prepaid Billing, Connect IXC™, Connect
CCB® Customer Care and Billing, and related services and solutions.
Primal's customers include leaders in the communications industry,
including Time Warner Cable, USA Mobility, Hutchison Australia and O2
Wireless in the United Kingdom. The company is headquartered in Irvine,
California. Information on Primal and its products can be obtained at
www.primal.com.
Forward-looking Statements
This news release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
involve a number of known and unknown risks and uncertainties that may
cause the company's actual results or outcomes to be materially different
from those anticipated and discussed herein. These include the company's
historic lack of profitability; end-user customers' acceptance and actual
demand, which may differ significantly from expectations; competitive
factors; economic and market conditions; and other risks associated with
the regulation of the Internet and the telecommunications industry.
Additional discussion of these and other factors affecting the company's
business and prospects is contained in the company's periodic filings with
the Securities and Exchange Commission.
Contact:
Terrea Tamanaha
Primal Solutions, Inc.
(949) 221-8337
(949) 260-1515 Fax
Email Contact
For additional information:
Bill Bousema
Sr. Vice President & CFO
Primal Solutions, Inc.
Phone: (949) 221-8502
E-mail: Email Contact
Don Allen
Partner
The Allen Group Investor Relations
Phone: (949) 683-2450
E-mail: Email Contact
SOURCE: Primal Solutions, Inc.
Source: Marketwire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Voip Articles
|
